Ordinary folks losing faith in stocks

Ordinary Americans are losing their faith in stocks: For the fifth year in a row, they are selling their holdings.

An analysis by The Associated Press finds that individual investors have pulled at least $380 billion from U.S. stock funds since April 2007. That is equal to all the money they put into the market in the previous five years.

The pullback has spread to public and private pension funds, brokerages and state and local governments.

And the selling has not let up despite a doubling of stock prices since March 2009.

It’s the first time ordinary folks have sold during a sustained bull market since relevant records were first kept during World War II.

2 comments

One reason that these investors are spooked is because of the lack of follow up on cheating by regulators and the business media. One Bernie Madoff is not going to be enough.

The story not told about Citadel Broadcasting is a place to start.

Please show how the CDL common shares can be cancelled by management who are then lavished with new shares to trade and how TARP supported companies such as Chase & G.E. can take the equity with so little comment by the media.

One reason that these investors are spooked is because of the lack of follow up on wall street cheating by regulators and the business media. One Bernie Madoff is not going to be enough.

The story not told about Citadel Broadcasting is a place to start.

Please show how the CDL common shares can be cancelled by management who are then lavished with new shares to trade and how TARP supported companies such as Chase and G.E. can take the shareholder’s equity for themselves with so little comment by the media.